Samsung Electronics reports a 50% jump in quarterly profit | Technology

The world’s largest maker of memory chips and smartphones estimated first-quarter profits of $11.6 billion.

Samsung Electronics Co Ltd on Thursday reported a 50% increase in quarterly operating income to post its highest first-quarter profit since 2018, as steady demand underpins memory chip prices.

The world’s largest smartphone and memory chip maker estimated first-quarter profit of 14.1 trillion won ($11.6 billion), compared with Refinitiv SmartEs’ estimate of 13.3 trillion won ($10.9 billion).

Revenue could grow 18% year-on-year to a record 77 trillion won ($63 billion), the company said in a brief preliminary earnings release, also beating market expectations. .

Samsung will release detailed earnings on April 28.

Despite chip prices falling in the first quarter, analysts said they rose better than expected due to steady demand as well as cautious investment spending by chipmakers and capacity expansion. limit. This has boosted Samsung’s chip earnings, which account for about half of its total profits.

The price of a DRAM chip, widely used in data centers, fell 8% in the quarter according to data provider TrendForce, while the price of NAND flash memory chips, used to store data in technology devices, down from 5% to 10 percent.

Analysts expect DRAM prices to continue to decline in the fourth-quarter as rising inflation could affect demand for PCs, laptops and smartphones.

However, February raw material contamination at NAND Flash chip factory owned by Japan’s Kioxia and US company Western Digital is expected to push NAND Flash prices up 5-10%, offset the impact of modestly high inventories maintained by buyers, TrendForce said.

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